-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HLZkA0YSxemjvs72h//YemTQk7TtI9498nmlgyFNqAsvyY5tepx+3W67Pn3oOuFE EXiUCDLGhunupIBEjhvZcw== 0000909654-04-000333.txt : 20070119 0000909654-04-000333.hdr.sgml : 20070119 20040202165143 ACCESSION NUMBER: 0000909654-04-000333 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040130 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040202 DATE AS OF CHANGE: 20070118 FILER: COMPANY DATA: COMPANY CONFORMED NAME: JEFFERSON BANCSHARES INC CENTRAL INDEX KEY: 0001222915 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] STATE OF INCORPORATION: TN FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-50347 FILM NUMBER: 04559748 BUSINESS ADDRESS: STREET 1: JEFFERSON FEDERAL SAVINGS & LOAN ASSOC STREET 2: 120 EVANS AVENUE CITY: MORRISTOWN STATE: TN ZIP: 37814 BUSINESS PHONE: 4235868421 MAIL ADDRESS: STREET 1: JEFFERSON FEDERAL SAVINGS & LOAN ASSOC STREET 2: 120 EVANS AVENUE CITY: MORRISTOWN STATE: TN ZIP: 37814 8-K 1 jeffersonbanc8k1-30.txt 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ------------------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 ------------------------------ Date of Report (Date of earliest event reported): January 30, 2004 JEFFERSON BANCSHARES, INC. (Exact name of registrant as specified in charter) Tennessee (45-0508261) --------- ------------ (State of incorporation or organization) (IRS Employer Identification No.) 120 Evans Avenue, Morristown, Tennessee 37814 - --------------------------------------- ----- (Address of principal executive offices) (Zip Code) NOT APPLICABLE (Former name or former address, if changed since last report) 2 ITEMS 1, 2, 3, 4, 5, 6, 8, 9, 10 AND 11 NOT APPLICABLE. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Not applicable. (b) Not applicable. (c) Exhibits. Exhibit No. Description - ----------- ----------- 99.1 Press Release Dated January 30, 2004 ITEM 12. RESULTS OF OPERATION AND FINANCIAL CONDITION On January 30, 2004, Jefferson Bancshares, Inc., the holding company for Jefferson Federal Bank, announced its financial results for the quarter ended December 31, 2003. The press release announcing financial results for the quarter ended December 31, 2003 is filed as Exhibit 99.1 and incorporated herein by reference. 3 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. JEFFERSON BANCSHARES, INC. By: /s/ Anderson L. Smith ------------------------------------- Anderson L. Smith President and Chief Executive Officer Date: January 30, 2004 EX-99.1 3 jeffersonbancexb991-30.txt 1 JEFFERSON BANCSHARES ANNOUNCES SECOND QUARTER RESULTS Morristown, Tennessee -- (January 30, 2004) - Jefferson Bancshares, Inc. (Nasdaq: JFBI), the holding company for Jefferson Federal Bank, today reported a 16.9% increase in net income for the three months ended December 31, 2003 compared to the same period in 2002. Net income was $966,000, or $0.11 per diluted share, for the quarter ended December 31, 2003 compared to net income of $826,000, or $0.10 per diluted share, for the quarter ended December 31, 2002. The increase in earnings was primarily the result of an increase in net interest income combined with reduced provision for loan losses, which more than offset an increase in noninterest expense. For the six month period ended December 31, 2003, the Company recorded a net loss of $625,000 compared to net income of $1.8 million for the comparable period in 2002. The net loss for the six month period was due to the nonrecurring expense associated with the $4.0 million contribution to the Jefferson Federal Charitable Foundation. On July 1, 2003, Jefferson Federal Bank completed its conversion from the mutual holding company structure to the stock holding company structure. As part of the conversion, Jefferson Bancshares also formed the Jefferson Federal Charitable Foundation, which was funded with $250,000 and 375,000 shares of Jefferson Bancshares common stock. This stock and cash contribution was recorded as an expense of $4.0 million, or approximately $2.5 million after income taxes. Net interest income increased $161,000, or 6.1%, to $2.8 million for the quarter ended December 31, 2003. The net interest margin decreased 51 basis points to 3.66% for the quarter ended December 31, 2003. The decline in net interest margin reflects growth in earning assets with lower yields due to current low market interest rates. Interest income decreased $304,000 or 7.0%, to $4.1 million for the current three month period. The average balance of interest earning assets increased $53.0 million to $306.3 million while the average yield on interest earning assets declined 159 basis points to 5.31%. The decline in the yield on interest earning assets was due to a combination of factors including the investment of conversion proceeds in short-term securities and a decrease in both the volume and average yield on loans. Interest expense decreased $465,000, or 26.9%, to $1.3 million for the quarter ended December 31, 2003 as the average balance of interest-bearing deposits decreased $7.9 million to $210.9 million, and the average rate paid declined 77 basis points to 2.35%. The interest rate spread was 2.93% and 3.76% for the quarters ended December 31, 2003 and 2002, respectively. For the six month period ended December 31, 2003, net interest income increased 4.5% to $5.6 million compared to $5.4 million for the comparable period in 2002. For the six months ended December 31, 2003, the interest rate spread declined to 2.94% from 3.79% for the same period in 2002. Net interest margin for the six months ended December 31, 2003 was 3.66% compared to 4.20% for the same period in 2002. Noninterest income increased $17,000, or 7.2%, to $252,000 for the quarter ended December 31, 2003 primarily as a result of an increase in dividends from investments. 2 For the six month period ended December 31, 2003, noninterest income decreased $33,000, or 6.4%, to $486,000 due primarily to a decrease in gain on sale of investments. Noninterest expense increased $210,000, or 16.1%, to $1.5 million for the three month period ended December 31, 2003, primarily due to expenses associated with the Employee Stock Ownership Plan. For the six month period ended December 31, 2003, noninterest expense totaled $7.1 million compared to $2.5 million for the same period in 2002. The $4.6 million increase was primarily attributable to the nonrecurring expense associated with the $4.0 million contribution to the Jefferson Federal Charitable Foundation and to expenses associated with the Employee Stock Ownership Plan. Nonperforming assets totaled $2.0 million at December 31, 2003, compared to $3.0 million at June 30, 2003 and $4.2 million at December 31, 2002. The provision for loan losses decreased $547,000 for the six months ended December 31, 2003, as there were no additions to the allowance for loan losses during the period. The allowance for loan losses was $2.6 million, or 1.38% of gross loans, at December 31, 2003 compared to $2.7 million, or 1.40% of gross loans, at December 31, 2002. Net charge-offs amounted to $109,000 and $259,000 for the three and six month period ended December 31, 2003 compared to $165,000 and $553,000 for the comparable periods in 2002. Total assets at December 31, 2003 were $314.8 million compared to $363.6 million at June 30, 2003. At June 30, 2003, orders received in the subscription and community offering totaled in excess of $105.0 million. Approximately $39.1 million of unfilled orders was returned to subscribers in the following quarter. Net loans increased $2.5 million, or 1.4%, to $182.5 million at December 31, 2003, compared to $180.0 million at June 30, 2003. Investment securities increased $36.1 million, or 47.3%, to $112.5 million at December 31 2003, compared to $76.4 million at June 30, 2003. The increase in investment securities is due primarily to the investment of conversion proceeds and the reinvestment of proceeds from called securities. Total equity increased by $59.9 million to $96.5 million at December 31, 2003 due primarily to $64.5 million in net proceeds from the conversion. As a result of a net loss for the six month period combined with dividends paid to shareholders, retained earnings decreased $1.3 million to $31.4 million at December 31, 2003. Jefferson Bancshares, Inc. is the holding company for Jefferson Federal Bank, a federally chartered stock thrift institution headquartered in Morristown, Tennessee. Jefferson Federal is a community oriented financial institution offering traditional financial services within its local communities through its main office and two drive through facilities in Morristown. More information about Jefferson Bancshares and Jefferson Federal Bank can be found at its website: www.jeffersonfederal.com. This news release may contain forward-looking statements, which can be identified by the use of words such as "believes", "expects", "anticipates", "estimates", or similar expressions. Such forward-looking statements and all other statements that are not historic facts, are subject to risks and uncertainties which could cause actual results to 3 differ materially from those currently anticipated due to a number of factors. These factors include, but are not limited to, general economic conditions, changes in the interest rate environment, legislative or regulatory changes that may adversely affect our business, changes in accounting policies and practices, changes in competition and demand for financial services, adverse changes in the securities markets, and changes in the quality or composition of the Company's loan or investment portfolios. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated, or projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Specific factors that could cause future results to vary from current management expectations may be detailed, from time to time in the Company's filings with the Securities and Exchange Commission, which are available through the SEC's website at www.sec.gov. - ---------------------- Contacts: Jefferson Bancshares, Inc. Anderson L. Smith 423-586-8421 Jane P. Hutton 423-586-8421 4 JEFFERSON BANCSHARES, INC. AT AT DEC. 31, 2003 JUNE 30, 2003 --------------- --------------- FINANCIAL CONDITION DATA: Total assets $ 314,780 $ 363,602 Loans receivable, net 182,465 180,010 Cash and cash equivalents, and interest-bearing deposits 7,700 96,543 Investment securities 112,499 76,400 Deposits 215,661 324,247 Borrowings 2,000 2,000 Stockholders' equity $ 96,561 $ 36,625
THREE MONTHS ENDED DECEMBER 31, SIX MONTHS ENDED DECEMBER 31, 2003 2002 2003 2002 -------------- -------------- ------------ ----------------- OPERATING DATA: Interest income $ 4,063 $ 4,367 $ 8,205 $ 8,944 Interest expense 1,264 1,729 2,593 3,576 Net interest income 2,799 2,638 5,612 5,368 Provision for loan losses - 240 - 547 Net interest income after provision for loan losses 2,799 2,398 5,612 4,821 Noninterest income 252 235 486 519 Noninterest expense 1,514 1,304 7,062 2,534 Earnings before income taxes 1,537 1,329 (964) 2,806 Total income taxes 571 503 (339) 1,054 Net earnings $ 966 $ 826 $ (625) $ 1,752 PER SHARE DATA: Earnings per share, basic $ 0.12 $ 0.10 * $ (0.07) $ 0.22 * Earnings per share, diluted $ 0.11 $ 0.10 * $ (0.07) $ 0.22 * Dividends per share $ 0.04 $ 0.029 * $ 0.08 $ 0.059 * * Per share amounts have been adjusted to reflect the exchange of shares in the conversion
SIX MONTHS ENDED DECEMBER 31, 2003 2002 -------------- ----------- ALLOWANCE FOR LOAN LOSSES: Allowance at beginning of period $ 2,841 $ 2,696 Provision for loan losses - 547 Recoveries 174 278 Charge-offs (433) (831) ------------ ---------- Net charge-offs (259) (553) ------------ ---------- Allowance at end of period $ 2,582 $ 2,690 ============ ========== Net charge-offs to average outstanding loans during the period 0.28% 0.58% 5 AT AT AT DEC. 31, 2003 JUNE 30, 2003 DEC. 31, 2002 -------------- ------------- ------------- NONPERFORMING ASSETS: Nonaccrual loans: Real Estate $ 1,184 $ 1,739 $ 2,326 Commercial business - - - Consumer 5 17 53 -------------- ------------- ------------- Total 1,189 1,756 2,379 -------------- ------------- ------------- Real estate owned 846 1,227 1,775 Other nonperforming assets 1 16 72 -------------- ------------- ------------- Total nonperforming assets $ 2,036 $ 2,999 $ 4,226 ============== ============= =============
SIX SIX MONTHS ENDED YEAR ENDED MONTHS ENDED DEC. 31, 2003 JUNE 30, 2003 DEC. 31, 2002 ------------- ------------- ------------- PERFORMANCE RATIOS: Return on average assets NM 1.32% 1.33% Return on average equity NM 10.25% 10.25% Interest rate spread 2.94% 3.66% 3.79% Net interest margin 3.66% 4.10% 4.20% Efficiency ratio 116.23% 45.30% 43.64% Efficiency ratio (excludes $4.0 million contribution to the Charitable Foundation 50.39% 45.30% 43.64% Average interest-earning assets to average interest-bearing liabilities 142.98% 117.67% 114.47% CAPITAL RATIOS: Tangible capital 21.59% 9.75% 13.00% Core capital 21.59% 9.75% 13.00% Risk-based capital 38.21% 21.06% 22.38% Average equity to average assets 30.19% 12.90% 12.94% ASSET QUALITY RATIOS: Allowance for loan losses as a percent of total gross loans 1.38% 1.54% 1.40% Allowance for loan losses as a percent of nonperforming loans 217.16% 161.79% 113.07% Nonperforming loans as a percent of gross loans 0.63% 0.95% 1.24% Nonperforming assets as as percent of total assets 0.65% 0.82% 1.62%
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